Many factors affect a potential homeowner’s decision to buy a house, but one of the most important is safety. Neighborhoods with low crime rate are much more attractive than those with a higher tendency for crime.
Crime and the Real Estate Market
Because housing markets fluctuate due to a plethora of different factors, it is difficult to pinpoint the exact role of crime rate in the overall health of a market. However, there is one common thread that was discovered in a 2010 study by researchers at Florida State University. They found that robbery and aggravated assault most highly influenced housing values across different neighborhoods. Another study from the University of Troy found that an area’s home prices fell 0.25% for every 1% increase in violent crime.
Another interesting trend is that sometimes crime rate in one city can affect the real estate prices in another. For example, if City A slashes their police force in half and crime rates rise, neighboring City B may experience a spike in home prices because of people moving to that city. This happened in California back in 2008.
Potential Homeowners
It’s not uncommon for homeowners to research an area’s crime rate before house hunting in that region. They would rather know in advance than be surprised after they move in. A history of high or rising crime rates may also take these areas off a homeowner’s option list entirely. When this becomes a pattern, it leads to the overall decrease in an area’s property value.
Pittsburgh Crime Rates
Unfortunately, Pittsburgh has one of the nation’s highest violent crime rates across all communities. In the entire state of Pennsylvania, you have a 1 in 316 chance of being a victim of a violent crime. In Pittsburgh, your chances jump to 1 in 126. Pittsburgh residents also have a 1 in 30 chance of becoming the victim of a property crime, such as burglary, theft or motor vehicle theft.
Crime Prevention Methods
When the residents of an area understand how crime affects their property values and other aspects of the community (such as business, school quality, etc.), they’re more invested in finding effective methods for crime prevention. Two common examples are neighborhood watch programs and after school programs to teach good habits from a young age. If you’re concerned about your neighborhood’s safety, get involved with the community to find solutions.
Jason Cohen (Pittsburgh) 